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Cambodian Factory Compensation Takes Cue From Bangladesh

Sportswear brand Asics has made payouts to the families of those killed when Wing Star, one of the company’s footwear factories, collapsed in Cambodia. The payouts were calculated based on International Labour Organization (ILO) Convention 121 and a formula established by Bangladeshi unions–the same compensation formula used for the Rana Plaza collapse payout.

The formula takes into consideration “appropriate support and adequate care” for those affected and ensures compensation can be calculated and disbursed in a timely manner.

Asics also paid full medical costs for those injured during the collapse, provided transportation for hospital visits and a leave of absence for victims to fully recover before returning to work with full wages and benefits.

Ken Loo, Secretary-General of the Garment Manufacturers Association in Cambodia said in a statement: “As an organization that seeks fair, safe and ethical working conditions for Cambodians, we support compensation that is equitable and reflective of the needs of workers and their families. We provided information and advice to ASICS to arrive at the appropriate compensation and hope with them that the families of the victims will be able to use the funds to move on and rebuild their lives after these painful losses.”

According to an Asics responsibility statement, the company is taking measures to improve safety conditions at both Wing Star and other Cambodian supplier factories including demolishing and banning building extensions like that which caused this collapse, enforcing inspections by the Cambodian Security Office and establishing a new Health and Safety Committee.